Government set to fully acquire Goods and Services Tax Network

The Union Cabinet on Wednesday approved increasing the government stake in Goods and Services Tax Network (GSTN) to 100 percent.

The government, which currently holds 49 percent stake in the technological arm of the new indirect tax regime, will acquire the entire 51 percent equity held by the non-government institutions, an official statement said.

The stake will be acquired equally by the Central and state governments.

"The restructured GSTN, with 100 percent government ownership, shall have equity structure between the Centre (50 percent) and the states (50 percent)," the government said.

The Cabinet also decided to allow a change in the existing composition of the GSTN board, which will have a total of 11 directors including a Chairman and a Chief Executive (CEO).

While three directors each will be nominated by the Central and state governments, three other independent directors would be nominated by the board of directors, the statement said.